A typical home in the Pittsburgh, Pennsylvania metro area costs $143,200, less than the national median home value of $194,500.
The median home value in Pittsburgh is lower than in Pennsylvania as a whole, where the typical home is worth $170,600. Pittsburgh’s median home value is also the fourth highest of any metro area in the state.
Residents of areas with less expensive real estate also tend to have relatively low incomes. In Pittsburgh, however, the typical household earns $54,080 annually, slightly lower than the $55,702 median household income statewide and similar to the $55,775 national figure. Pittsburgh has the seventh highest median household income of any Pennsylvania metro area.
Home values tend to be higher in dense, urban areas, where space is limited and land is more expensive as a result. The priciest homes in the country are in cities along the East and West Coast, where population density is also among the highest nationwide. In the Pittsburgh metro area, there are 446 people per square mile, far greater than the average urban population density of 283 Americans per square mile across all metro areas nationwide. Pittsburgh has the sixth highest population density of any Pennsylvania metro area.
Home values in the metro area may also be hurt by the condition of the local job market. People often relocate for occupational reasons, and an area with higher unemployment is more likely to have less expensive real estate. The Pittsburgh metro area’s unemployment rate, however, was 5.9% as of August 2016, higher than the 4.9% jobless rate nationwide.
Despite the high unemployment rate today, improved unemployment among the Pittsburgh workforce over the last five years — like most of the country — may have helped increase home values as a result. Since August 2011, the Pittsburgh unemployment rate has fallen by 1.6 percentage points. Over the same period, home values in the metro area increased by 12.5%. Nationwide, the unemployment rate improved by 4.1 percentage points as the median home value increased by 12.0%.
Areas with low home values are often fairly well-educated. In addition to the lower-paying jobs that educated residents often hold, the lack of good schools and universities are likely to decrease demand for nearby homes. In Pittsburgh, 33.0% of adults have at least a bachelor’s degree, a larger share than the 30.6% of Americans with similar education nationwide.